Singapore is one of the most business-friendly economy in the world
Singapore has one of the most stable political environments in Southeast Asia, offering a strong sense of security and comfort for businesses and investors. It offers a wide variety of dining and entertainment options, world-class education systems, and quality health care providers that make it an ideal place to raise a family.
The country’s business-friendly regulations, extensive government support for low corporate tax rates, and geographical location make Singapore one of the world’s top outsourcing and entrepreneurship hotspots. Many companies, both large and small, view outsourcing to Singapore accounting firms as a reliable and attractive option.
Benefits of business outsourcing to Singapore accounting firms
Outsourcing provides companies with an opportunity to expand their client base and network operations. Moreover, they will be able to conserve valuable company resources because they will be engaging a service provider with appropriate experience and expertise in the specific business functions they are outsourcing.
Singapore incorporated companies are required to maintain monthly accounts, payroll processing, file GST, meet corporate tax reporting requirements and report to ACRA and IRAS on an annual basis. Therefore, it is a good idea for small and medium businesses to consider working with a reputable Singapore business outsourcing company, particularly if the company lacks the in-house skills or the budget to train or hire employees.
The Singapore accounting services providers are designed to provide high-quality and timely services to meet the needs of companies through the use of efficient work processes and advanced technology.
The following are ten reasons for hiring an outsourcing company in Singapore.
1. Support from the Singapore Government
Manufacturing and financial services constitute two critical pillars of Singapore’s economy, contributing significantly to its yearly GDP. It is the Singapore government’s intention to promote the growth of these industries by formulating beneficial business policies, cutting red tape, and simplifying compliance requirements. Additionally, government-sponsored programs provide financial assistance, cash grants, and access to the latest technologies to ensure the success of entrepreneurs.
2. IRAS – Corporate tax rate and incentives
Singapore’s corporate tax rate is 17%, and it is one of the lowest in the world. In addition, the tax system is under continual revision as a means of stimulating the growth of local businesses and attracting foreign investment across the country. Tax professionals can advise you on tax matters and help you resolve IRAS inquiries and file tax returns.
3. Access to professionals who understand ACRA and IRAS requirements
Today, there is considerable uncertainty in the global economy, which forces companies to expand or reduce their workforces accordingly. There is an increasing demand for these talents, but the tight labour market and limited pool of skilled workers makes it virtually impossible to meet this goal. Taking advantage of Singapore’s labour force, companies can reduce the risk of being unable to adjust quickly to any shift in demand.
4. Better allocation of internal resources
Do you really need to spend resources in areas that are not focused on improving core business functions? Labour and capital are becoming increasingly expensive in an already challenging economic climate. When companies outsource less-important services, they are able to free up capital and time, which helps move the business forward.
5. Improve risk management on core business functions
One of the most important reasons for outsourcing some of your non-core functions is risk management. In the event that your business is launching a new product or service, having a dedicated workforce allows you to minimize risk and ensure that the product or service meets your business objectives. The organization can easily adapt its operations in response to changes in demand by outsourcing non-core business functions.
6. Singapore is a significant player in trade
The country has risen to become a significant player in trade between East and West not only as a result of having a limited amount of natural resources at its disposal but also by taking advantage of intermediary trade and entrepôt trade.
Singapore exports a wide range of raw materials, which are then refined in local industries and exported. For instance, Singapore’s non-oil exports (NODX) rose by 18.4% year-on-year in December 2021, marking its 13th consecutive month of growth. The increase followed a decade-high rise of 24.2% in November 2021. Singapore is the world’s 14th largest exporter and 17th largest importer.
Singapore’s top three exports and imports are machinery and transport equipment, chemicals and chemical products, and miscellaneous manufactured goods. The country has been able to capitalize on this economic growth to position itself as a hub where companies can coordinate their activities across the region and internationally.
With Singapore being the world’s top location for outsourcing, it continues to revise its foreign manpower policies to ensure that companies have access to global talent in addition to the local talent pool. Therefore, outsourcing service providers have access to skilled resources to serve you.
7. Focus on core business activities
It is also important to note that outsourcing allows you to concentrate your resources on the most essential aspects of your business. Customer service is an important part of any business, but it can be quite time-consuming and distracting.
Your company may benefit from outsourcing customer service in two ways. First of all, your customers will receive consistent and reliable customer service, and second, you and your team will be able to focus on activities that will help your business grow more efficiently and increase revenue.
You should take advantage of outsourcing firms in order to achieve a positive image for your company. You can expect to find modern outsourcing companies that will represent your business in the best light.
8. Scale up your operations and hire more managers
You may find it more cost-effective to outsource your non-core business activities (bookkeeping, payroll and tax) to a Singapore accounting firm than to hire in-house personnel. This allows businesses to reduce their regulatory costs and their overall outsourcing costs.
Over time, employers will be able to hire full-time managerial staff to manage the key functions and to scale their operations.
9. Steady growth and improve profit margin
It is imperative that a company hires more employees in order to grow. However, many businesses cannot afford the additional expenses associated with hiring and supporting more full-time employees. This would ultimately limit the potential growth of a company and slow its momentum.
In the case of companies that hire new personnel, they are taking a risk, but the chances that the gamble will not pay off are high, resulting in a reversal of growth. It is more cost-effective to outsource work than to build your own internal team. Outsourcing is a great way to ensure that your growth is steady and produces results. And, it is easier to cancel an outsourcing contract than to lay off employees.
10. Provides you with peace of mind
Singapore corporate secretarial service providers are responsible for informing you of annual ACRA and IRAS filing requirements and deadlines. You can rely on their professional services and ensure that your Singapore companies comply with local regulations.
Next steps
Singapore offers several competitive outsourcing benefits like annual compilation services. However, before rushing to acquire these services, you must consider your company’s specific needs and requirements and choose an outsourcing service provider appropriately.
Please send through your enquiry via Contact Form, and our team will contact you to discuss in detail.